Listing ID: 80694
Business Overview
This fully licensed building contractor, located on one of Hawaii’s beautiful islands, has become one of the most preferred and largest providers of expert environmental and hazardous removal services to the construction industry in its Hawaii market. They provide expert abatement and removal and remodeling, renovation and restoration services for residential, commercial, industrial and government properties. They are fully licensed, bonded and insured and certified by the State of Hawaii to provide abatement and removal services for a variety of hazardous materials. Their professional staff have the required training and certification to ensure that the removal of asbestos, lead and other hazardous materials is conducted according to all state and federal regulations.
They believe they have a share over 50% in their market and this is driven by their superior work, excellent “word-of-mouth” referrals and recommendations from their many satisfied customers. Annual sales were $912,934 in 2018 which produced $438,000 of SDE. Covid-19 did affect their business and they are now in a rebuilding period and expect a good 2022.
Key Investment Highlights are:
• Very high market growth due to aging old construction (Hawaii had a residential and commercial building boom in the 1960’s, 70’s and 80’s which now requires hazmat remediation in many cases)
• High moisture levels in Hawaii often result in mold
• High profit margins and growing market share
• Excellent business reputation
• Well trained and licensed technicians
• Limited Direct Competition
A Hawaii contractor’s license is required, and the current owner will provide his license for a reasonable period after the sale. The business is being offered for sale on a fully turnkey basis, including two vehicles. The owner is retiring and is now running the business on an absentee basis. He will provide a non-compete agreement and training/orientation for the buyer.
For a detailed Confidential Business Profile, with tax return based financial data please contact us.
Financial
- Asking Price: $595,000
- Cash Flow: $102,460
- Gross Revenue: $602,051
- EBITDA: N/A
- FF&E: $150,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2014
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,125
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Leased space with 1,125 sq. ft., located close to customers 2 vehicles
2 weeks
Retirement
Limited direct competition
The big growth in Hawaii construction began in the 1970s (hotels, condos, schools, government buildings, utilities, etc.) and now many of these older buildings require remediation and renovation due to asbestos, lead, mold, etc. In addition, there is more of an awareness of the health issues associated with old building materials and mold, etc. and a demand to remediate these. They see significant growth as these older buildings have to be remediated. Many buildings constructed before 1986 have asbestos or other hazardous materials which need to be removed and remediated. The Company only works on one of the Hawaii Islands and believes that there would be excellent growth opportunity in the other Hawaii islands for their services.
Additional Info
The company was started in 2014, making the business 8 years old.
The company has 7 employees and resides in a building with disclosed square footage of 1,125 sq ft.
The property is leased by the business for $1,194 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell operating businesses. However, the genuine reason vs the one they say to you may be 2 completely different things. As an example, they may state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be reasons to attempt to hide the reality of transforming demographics, increased competition, current decrease in earnings, or a range of various other factors. This is why it is really crucial that you not rely totally on a vendor's word, however instead, utilize the seller's response together with your overall due diligence. This will paint a much more realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses take out loans so as to cover things like stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that earnings margins are too tight. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that need to be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new consumers? Most times, businesses have repeat clients, which create the core of their day-to-day earnings. Particular elements such as brand-new competition sprouting up around the location, roadway construction, and also personnel turn over can affect repeat consumers as well as adversely influence future profits. One crucial thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A final thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? Just how might the regional median home earnings effect future earnings prospects?
